Orange County NC Website
Browse       Search
GRANGE COUNTY <br />BOARD OF CUMMISSI4NERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 5, 2011 <br />Action Agend <br />Item Na. <br />SUBJECTS Sales Tax Distribution Method for Fiscal 201112012 <br />DEPARTMENT: Financial Services PUBLIC HEARING: 4Y1N} No <br />ATTACHMENT~S~: <br />Attachment 1, Property Tax Levies for <br />2010-2011 Preliminary <br />~range'County Levies} <br />Attachment 2. Qrange County Sales Tax <br />Distribution Options 2009- <br />2010 <br />Attachment 3. Property Tax Rate Impact <br />by Local Government of <br />Change in Sales Tax <br />Distribution <br />INFORMATION CONTACT: <br />Clarence Grier, (919) 245-2453 <br />Michael Talbert, (919) 245-2153 <br />PURPOSE: To review Sales Tax Distribution Options and to confirm that the Orange County <br />distribution of local option sales tax will remain based on Population for fiscal year 201112012. <br />BACKGROUND: The Board of County Commissioners was first granted the option of a one ~1 } <br />cent Local Government Sales and Use tax by the General Assembly in 1971. Ar#icle 39, which <br />allows the County to levy the tax, also spells out two different options for the County to select <br />for distribution of the funds between the County and municipalities. This distribution option not <br />only applies to the original one ~1}cent sales and use tax, but to all local government sales and <br />use tax levied in Qrange County. <br />The first option is to distribute the sales tax collected based on Population. The formula takes <br />the County's population and adds all individual municipal populations. The percent of each <br />individual municipalities population divided by that grand total is used to allocate the sales tax <br />revenue. This method has been used by Orange County for at least the last 20 years. <br />The second option is to distribute the sales tax collected based on the Ad Valorem Property Tax <br />Levied by each taxing unit of local government. Attachment 1 lists the 2010-2011 Property Tax <br />Levies by taxing unit of local government as provided by the North Carolina Department of <br />Revenue. Qrange County is the taxing unit of local government for not only Orange County, but <br />for all special tax districts located in Qrange Gounty. Attachment 2 provides an estimate of sales <br />tax revenues distributed within Orange County by municipality, Under option one, only the <br />